EX-99.1 2 ea022241201ex99-1_samfine.htm EARNING RELEASE, DATED AS OF DECEMBER 20, 2024

Exhibit 99.1

 

SAMFINE CREATION HOLDINGS GROUP LIMITED Announces First Half 2024 Unaudited Financial Results

 

HONG KONG, Dec. 20, 2024 (GLOBE NEWSWIRE) -- SAMFINE CREATION HOLDINGS GROUP LIMITED (Nasdaq: SFHG) (the “Company” or “Samfine”), a printing service provider headquartered in Hong Kong, today announced its unaudited financial results for the six months ended June 30, 2024.

 

Overview:

 

  ● Revenue was HK$81.9 million (US$10.5 million) for the six months ended June 30, 2024, representing an increase of 61.3% from HK$50.8 million for the same period in 2023.
     
  ●

Net income was HK$0.8 million (US$106,105) for the six months ended June 30, 2024, as compared with a net loss of HK$3.8 million for the same period in 2023.

 

Six Month Financial Results Ended June 30, 2024

 

Revenue. Revenue increased by 61.3% to HK$81,934,259 (US$10,493,226) for the six months ended June 30, 2024 from HK$50,800,321 for the six months ended June 30, 2023. The overall increase in revenue was mainly driven by the increase in demand of book products and novelty and packaging products from customers.

 

General and administrative expenses. General and administrative expenses increased by 9.2% to HK$11,081,674 (US$1,419,217) for the six months ended June 30, 2024 from HK$10,152,410 for the six months ended June 30, 2023, principally due to increase in legal and professional fee.

 

Selling and marketing expenses. Selling and marketing expenses increased by 37.5% to HK$5,474,255 (US$701,082) for the six months ended June 30, 2024 from HK$3,982,211 for the six months ended June 30, 2023. The overall increase in selling and marketing expenses was mainly driven by the increase in transportation costs.

 

Net income. Net income increased by 121.8% to a net income of HK$828,511 (US$106,105) for the six months ended June 30, 2024 from a net loss of HK$3,797,489 for the six months ended June 30, 2023. The increase in net income was mainly due to the increase in assessable profit resulting from the increase in revenue.

 

About SAMFINE CREATION HOLDINGS GROUP LIMITED

 

SAMFINE CREATION HOLDINGS GROUP LIMITED is an established one-stop printing service provider which principally provides printing services in Hong Kong and the PRC. With over 20 years of experience in the printing industry, its operating subsidiaries offer a wide range of printed products such as book products and novelty and packaging products. Its operating subsidiaries’ customers principally comprise of book traders located in Hong Kong whose clients are located around the world, mainly in the U.S. and Europe.

 

Exchange Rate Information

 

The Company is a holding company with operations conducted in Hong Kong and the PRC through its operating subsidiaries in Hong Kong and the PRC, Samfine HK and Samfine SZ, respectively. SFHG’s reporting currency is HKD. This prospectus contains translations of HKD into U.S. dollars solely for the convenience of the reader. Unless otherwise noted, all translations from HKD to U.S. dollars and from U.S. dollars to HKD in this prospectus were calculated at the noon buying rate of US$1 = HK$7.8083 on June 28, 2024, as published in H.10 statistical release of the United States Federal Reserve Board. We make no representation that the HKD or U.S. dollar amounts referred to in this prospectus could have been or could be converted into U.S. dollars or HKD, as the case may be, at any particular rate or at all.

 

 

 

 

Forward-Looking Statements

 

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. The Company cautions investors that actual results may differ materially from the anticipated results, and encourages investors to read the risk factors contained in the Company’s final prospectus and other reports it files with the SEC before making any investment decisions regarding the Company’s securities. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law.

 

Rounding Amounts and Percentages

 

Certain amounts and percentages included in this press release have been rounded for ease of presentation. Percentage figures included in this press release have not in all cases been calculated on the basis of such rounded figures, but on the basis of such amounts prior to rounding.

 

For investor and media inquiries, please contact:

 

SAMFINE CREATION HOLDINGS GROUP LIMITED

 

Investor Relations

 

Email: 888@1398.cn

 

Telephone: (852) 3589 1500

 

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SAMFINE CREATION HOLDINGS GROUP LIMITED AND ITS SUBSIDIARIES

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF DECEMBER 31, 2023 AND JUNE 30, 2024

 

   As of
December 31,
2023		   As of
June 30,
2024		   As of
June 30,
2024		 
   HK$   HK$   US$ 
   (Audited)   (Unaudited)   (Unaudited) 
ASSETS            
CURRENT ASSETS            
Cash and cash equivalents   17,349,390    17,564,301    2,249,440 
Restricted cash   6,347,680    7,852,453    1,005,655 
Accounts receivable, net   31,670,733    47,182,229    6,042,574 
Prepayments and other current assets, net   10,302,355    13,698,032    1,754,291 
Investment in life insurance policy, net   1,564,333    1,565,203    200,454 
Due from a related party   2,086,415    2,416,977    309,540 
Inventories, net   8,293,287    10,464,922    1,340,231 
Prepaid income tax   8,003    8,003    1,025 
Total current assets   77,622,196    100,752,120    12,903,210 
                
NON-CURRENT ASSETS               
Plant and equipment, net   15,817,168    18,934,526    2,424,923 
Intangible assets, net   869,832    651,620    83,452 
Other non-current assets   1,985,940    —    — 
Prepayment for acquisition of plant and equipment   1,357,434    290,668    37,226 
Right-of-use assets, net   5,022,022    4,615,352    591,083 
Deferred tax assets, net   2,640,387    2,417,601    309,620 
Total non-current assets   27,692,783    26,909,767    3,446,304 
Total assets   105,314,979    127,661,887    16,349,514 
                
LIABILITIES AND SHAREHOLDERS’ EQUITY               
CURRENT LIABILITIES               
Accounts and bills payable   47,485,156    67,107,440    8,594,373 
Accruals and other payables   7,203,230    13,863,430    1,775,474 
Banks and other borrowings   9,559,450    12,095,674    1,549,079 
Due to related parties   2,032,193    1,494,193    191,360 
Operating lease liabilities   3,928,046    3,492,618    447,296 
Finance lease liabilities   145,240    9,509    1,218 
Tax payable   10,095    —    — 
Total current liabilities   70,363,410    98,062,864    12,558,800 
                
NON-CURRENT LIABILITIES               
Banks and other borrowings   10,514,517    4,841,582    620,056 
Operating lease liabilities   1,093,976    1,122,734    143,787 
Total non-current liabilities   11,608,493    5,964,316    763,843 
Total liabilities   81,971,903    104,027,180    13,322,643 
                
COMMITMENTS AND CONTINGENCIES               
                
SHAREHOLDERS’ EQUITY               
Ordinary shares: US$0.0000625 par value, 800,000,000 shares authorized, 18,000,000 shares issued and outstanding as of December 31, 2023 and June 30, 2024   8,775    8,775    1,125 
Additional paid-in capital   15,491,225    15,491,225    1,983,281 
Accumulated other comprehensive income   4,465,962    3,929,082    503,856 
Retained earnings   3,377,114    4,205,625    538,609 
Total shareholders’ equity   23,343,076    23,634,707    3,026,871 
Total liabilities and shareholders’ equity   105,314,979    127,661,887    16,349,514 

 

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SAMFINE CREATION HOLDINGS GROUP LIMITED AND ITS SUBSIDIARIES

UNAUDITED INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
AND OTHER COMPREHENSIVE INCOME (LOSS)

FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2024

 

   Six months ended June 30, 
   2023   2024   2024 
   HK$   HK$   US$ 
REVENUE   50,800,321    81,934,259    10,493,226 
                
COST OF REVENUE   (40,455,750)   (64,895,629)   (8,311,109)
Gross profit   10,344,571    17,038,630    2,182,117 
                
OPERATING EXPENSES               
Selling and marketing   (3,982,211)   (5,474,255)   (701,082)
General and administrative   (10,152,410)   (11,081,674)   (1,419,217)
Total expenses   (14,134,621)   (16,555,929)   (2,120,299)
(LOSS) INCOME FROM OPERATION   (3,790,050)   482,701    61,818 
                
OTHER EXPENSES               
Interest income   66,229    66,785    8,553 
Interest expense   (693,483)   (682,011)   (87,344)
Other income   368,773    291,314    37,308 
Other gain, net   252,386    892,516    114,303 
Total other (expenses) income, net   (6,095)   568,604    72,820 
(LOSS) INCOME BEFORE INCOME TAX EXPENSE   (3,796,145)   1,051,305    134,638 
INCOME TAX EXPENSE   (1,344)   (222,794)   (28,533)
NET (LOSS) INCOME   (3,797,489)   828,511    106,105 
FOREIGN CURRENCY TRANSLATION ADJUSTMENT   (777,889)   (536,880)   (68,758)
TOTAL COMPREHENSIVE (LOSS) INCOME   (4,575,378)   291,631    37,347 
Weighted average number of ordinary shares:               
Basic and diluted   18,000,000    18,000,000    18,000,000 
(LOSS) EARNINGS PER SHARE:               
BASIC AND DILUTED   (0.21)   0.05    0.01 

 

 

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